Summary:

Online movie service Movielink, owned by five major studios, is taking an important step in the download-to-own market: the half-baked downl…

Online movie service Movielink, owned by five major studios, is taking an important step in the download-to-own market: the half-baked download–to-own-and-burn-but-only-watchable-on-PCs deal that was announced in April (and rival CinemaNow announced such deals soon after) is being extended to DVD players, at least theoretically.
It has cut a deal with media software specialist Sonic Solutions that will make it possible for consumers to legally watch downloaded movies using a regular DVD player (meaning the DVD-burning software from Sonic has DRM built in so that no DVD-ready copies beyond the first few ones are possible) However, it does not yet have the necessary licenses to offer movies for this type of download, although discussions have begun. Specifics of DRM and usage rules have not been finalized.
VideoBusiness: Movielink is owned by five major studios, and it’s unlikely they would permit the deal with Sonic to go ahead unless plans for a download-and-burn option were well advanced. For home-burned discs to be compatible with all set-top DVD players, for instance, the industry would have to adopt the same CSS copy-protection system used on commercially manufactured discs, and alks have dragged on for months, though studios have softened their stance recently. Even if a deal cannot be reached soon on CSS, however, the studios are preparing other copy-protection schemes that would be compatible with most set-top players, the story says.
We noted earlier about the problems in these negotiations: Studios have dropped demands for the most controversial elements they were seeking in inter-industry negotiations with hardware makers and technology companies, namely that conventional set-top DVD players and DVD-ROM drives be retrofitted to incorporate watermark detection technology. Instead, they’re asking only that new devices that include enhanced features, such as the ability to burn downloaded movies or implement managed copy, incorporate the additional security measures.
I’m assuming CinemaNow will also make a similar announcement soon.
Related:
Studios Agree To DVD-Download Simul-Release; Burn, But Only PC Viewing
Breakthrough In DVD Burning Negotiations; Could Help Download-to-Own

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